Industrial Properties Group, Inc.’s President and Broker, Floyd H. Baldwin, SIOR, along with other Atlanta brokers were interviewed in a recent article by the Atlanta Business Chronicle on the condition of the industrial real estate market.
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The article titled “Industrial real estate market is thriving in metro Atlanta area” highlights that even amidst the Covid-19 pandemic, the health of the industrial real estate market is not just average, but instead thriving.
With demand for industrial real estate remaining steady, many of the Atlanta brokers throughout the article had a positive outlook about the future growth and condition of the market. Brett Buckner, Senior V.P. with Ackerman & Co. stated that “…rental rates have held their own. At the onset of the pandemic, some of the smaller local businesses put the brakes on the leases…. while larger national and international space users continued with their plans for the most part. The good news is we’re seeing many smaller space users restart the lease talks…”
Another broker, Pat Murphy, managing director with Cushman & Wakefield, forecasts that “Atlanta is very well positioned to take advantage of the growing ecommerce segment of the economy.” His reasons for this include Atlanta’s population growth, transportation systems/infrastructure (including Hartsfield-Jackson International Airport), and the proximity of the Port of Savannah.
While the outlook from Covid-19 is positive, there are still some residual effects facing the industrial real estate market.
The coronavirus pandemic has changed how the industrial real estate market does business, said Floyd Baldwin of Industrial Properties Group, Inc., including:
- The pace of deals. “So much of our business involves teamwork between owners, buyers, tenants, brokers and statewide economic partners,” he said. “Now, each of these team members are operating under different corporate guidelines, so it can be a much greater challenge to get the deal across the [finish] line.”
- Labor shortage. With the increase in unemployment benefits, some of those who lost their jobs are making more money not working than they would if they went back to a job, Baldwin said, adding that childcare will also become another issue soon, as most school buildings are closed and children will be learning from home.
- Logistics/supply chain. “So much of our manufacturing is dependent on parts from all across this nation and overseas,” said Baldwin. “Companies are having to find new suppliers and adjust their inventory procedures to keep production schedules.”
Baldwin also discussed standout project, SK Innovations battery plant in Jackson County. The company just announced a $940 million dollar Phase II expansion despite not having opened Phase I yet, and initial employment is expected to be over 2,600 people, he added.
When asked about the future of the industry Baldwin said “My goal is to improvise, adapt and overcome. I’ve been in this business for over 30 years, and we have gone through ups and downs and reinvented ourselves and the way we conduct business many times.”